$2 b China Development Bank loan for Lanco Infra

Lanco Infratech has entered into an agreement with China Development Bank for a $2 billion (over Rs.11,000 crore) loan for its two power projects.

In a statement issued here, Lanco Infratech said China Development Bank (CDB), owned by the Chinese Government, would arrange loans to the tune of $2 billion for the group’s two projects — Anpara Phase-II and Himawat — each having a capacity of 1,320 MW. “Out of the total amount of $2 billion required to be raised, $600 million will be contributed by CDB, and CDB will syndicate the balance from Chinese banks and financial institutions,” the statement said.

“Lanco and CDB have entered into a memorandum of understanding (MoU) for the loan facilities. This is going to help us in improving the economies of the project, and shall help us in completing the power projects within the stipulated time,” Lanco Infratech Chairman L. Madhusudhan Rao said.

He said Lanco was also in the process of addressing the debt-equity ratio at the same time. Lanco’s debt burden stood at nearly Rs.32,000 crore at the end of 2012 June quarter.